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Author: Admin

Law firm Vaić & Dvorničić Ltd. > Articles posted by Admin (Page 2)

Obligations of real estate lessors in Croatia

Given the rich tourism industry, which represents 1/5 of Croatia’s GDP, the owners are making the most of their properties by putting them in profitable use by short term rentals to tourists during the season. This article aims to present the methods of registration, taxation and administration for getting the most from the tourist lease. The Law on the hospitality provides simplified requirements for small lessors, who can offer the following domestic hospitality services: rooms, apartments or vacation houses leasing services, with the capacity up to 20 beds; camp leasing services with the capacity up to 10 units, but no more than 30...

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Real estate tax

Croatia, with approximately 3.87 million inhabitants, has over 2.4 million housingunits, including 600,000 unoccupied ones and 231,000 holiday homes. These figuresand the issue of long-term housing availability have prompted the government todraft a new Real Estate Tax Act. The primary aim is to reduce the tax disparitybetween income earned through labor and rental income, as rental income has sofar been taxed more favorably. This act, part of a broader tax reform, focuses onencouraging investment in productive sectors rather than solely in real estate. Thegoal is for this tax to completely replace the holiday home tax. Key changes The first change involves the...

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New act on building management and maintenance

The new Act on Building Management and Maintenance introduces a range of measures aimed at improving the condition of multi-apartment buildings in Croatia, many of which are poorly maintained, causing numerous problems for co-owners, including financial difficulties. Since the Act on Ownership and Other Real Rights came into force in 1997, there have been no detailed legal regulations for building maintenance. Instead, its rules were supplemented by the Regulation on Building Maintenance, which addressed only some aspects of maintenance. These previous provisions have proven legally inadequate and unsuitable for the complex issues of building management. The new act aims to establish...

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Amendments to the foreigners act

The draft proposal for amendments to the Foreigners Act was open for public consultation from February 28 to March 14. The purpose of these amendments is, among other things, to align with the new EU Blue Card Directive, which aims to facilitate the arrival of highly skilled labor. Additionally, the goal is to increase the efficiency of employing foreign workers, better regulate employment conditions for foreign workers, protect domestic workers, ensure the return of emigrated Croatian citizens, and secure the necessary workforce for the economy. The law entered into force on March 15th, 2025. Changes The validity period of residence and work...

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Digital services of the financial agency (FINA)

Commercial services FINA (Financial Agency) is a Croatian state institution that provides a wide range of services in the fields of finance, accounting, and public services, aiming to improve the business environment and promote economic stability. It was established to ensure transparency and efficiency in the financial sector. FINA also facilitates the digital transformation of businesses through innovative services such as e-Signature, e-Archive, and e-Invoice. These services help entrepreneurs and public institutions comply with regulations, reduce paperwork, and enhance the security of business processes. FINA contributes to the modernization of administrative tasks, enabling faster and more efficient business management while increasing...

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Digital services of the financial agency

Public services FINA (Financial Agency), a Croatian state institution providing services in finance, accounting, and digital business, aims to modernize and improve the business environment. It offers tools such as e-Signature, e-Archive, and e-Invoice, which facilitate compliance with regulations, reduce administrative burdens, and increase business security. In line with digitalization, FINA is developing comprehensive digital public services, which will be discussed further below. Digital services – public services The Register of Annual Financial Statements (RGFI) is a public service that provides access to the financial statements of business entities in the Republic of Croatia. Through this register, annual and consolidated financial statements, audit...

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BUSINESS-RELATED TERMINATION

An employment relationship established through an employment contract can only be terminated in a manner prescribed by law. The termination of an employment contract can be either regular or extraordinary. The legislator, considering the interests of both the employer and the employee, has provided for the possibility of the employer terminating the employment contract due to economic, technical, or organizational reasons, which is known as a business-related termination. This type of termination is a form of regular dismissal and is regulated by Article 155, Paragraph 1, Point 1 of the Labor Act. As stipulated by the law, this type of termination...

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